This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Commerce Bancshares: Financial Winner

NEW YORK ( TheStreet) -- Commerce Bancshares (CBSH - Get Report) was the winner among the largest U.S. financial names on Tuesday, with shares rising 2% to close at $40.45.

The broad indexes all pulled back as investors fretted over events in Europe, as Greece's conservative New Democracy party failed to form a new government after winning the most votes in Sunday's election. A failure to form a new government willing to cooperate with the austerity measures required under the European bailout deal increase the likelihood of Greece defaulting on its debt and exiting the euro.

The KBW Bank Index (I:BKX) declined 1% to close at 47.24, with 21 of the 24 index components showing declines.

Commerce Bancshares has seen its stock return 7% year-to-date, following a 3% return during 2011, which was rather solid performance considering that the KBW Bank Index dropped 25% last year.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The Kansas City, Mo., lender's shares trade for 1.7 times tangible book value, according to Thomson Reuters Bank Insight, and for 13.5 times the consensus 2013 earnings estimate of $2.99 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $2.95 cents.

Based on a 23-cent quarterly payout, the shares have a dividend yield of 1.95%.

Commerce Bancshares has achieved quarterly operating returns on average assets ranging from 1.20% to 1.49% over the past five quarters, according to Thomson Reuters Bank insight. Out of the 24 component names of the KBW Bank Index, only Commerce, Cullen/Frost Bankers (CFR), New York Community Bancorp (NYB), U.S. Bancorp (USB), and Wells Fargo (WFC) have achieved ROA exceeding 1.00% for the past five quarters.

FIG Partners analyst John Rodis rates Commerce "Market Perform," with a $43 price target and said in April that although he remained "positive" on Commerce, the upside was "not enough to warrant a higher rating."

Rodis estimates that Commerce will earn $2.91 a share this year, followed by EPS of $3.00 during 2013.

The analyst called Commerce "one of the better performing regional banks in our coverage and the industry for that matter," adding that "with a relatively 'clean' and lower-risk balance sheet, the Company has a tremendous amount of operating flexibility."

Interested in more on Commerce Bancshares? See TheStreet Ratings' report card for this stock.

RELATED STORIES:






-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CBSH $43.55 0.00%
AAPL $112.34 0.00%
FB $89.89 0.00%
GOOG $614.34 0.00%
TSLA $247.69 0.00%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs